tv Your World With Neil Cavuto FOX News May 3, 2013 1:00pm-2:01pm PDT
the dow is up to an all-time record closing high and at one point it topped 15,000. good numbers, good news, and good for you 401k. see you tonight! read them and leave. the dow charging into the record books, crossing 15,000 for the first time ever for a while, and it has been an impressive week as wellment up 2% just this week. up 14% for the year. and the dow is not alone. the s&p 500 probably a better game -- gauge of the market, climbing above 1600 for the first time ever. wall street got going when the jobs news came out and showed, well, the jobs were coming. the government robert 165,000 of them added to the economy. what is more, the two prior months were revised to show 100,000 more jobs than onlily reported. some folks are saying not strong enough to stop the federal
reserve from pumping even more money into the economy, which has been their oxygen. first, to wall street and my friend eddie on what got us here. for a while, teddy, crossing the 15,000 level, as you remind me, it takes sometimes repeated stabs to finally punch this through. what do you make of what's going on? >> i think it's the -- the momentum is clearly on the positive side, going back to december, neil, and the market has continued to climb this proverbial wall of worries, which we hear about almost continually. the sold-out bills, keep calling for the correction, and we have had some minor corrections but eve one turn out in hindsight to be an excellent buying opportunity so clearly the bills have the bit in their teeth and are going to run with it. >> neil: we talk about momentum, too, and sometimes momentum can overstate itself, but that the
earnings news has been good, and i think seven out of ten companies beating estimates and that's been the wind at their book. how long too you expect that to continue? >> actually, if you drill down into the third quarter earnings numbers, neil, there is some not so good news. about 50% of the companies that have reported so far have missed on their top line growth, which is -- >> neil: essentially on their revenues, sales. >> exactly, exactly. and we started to see this actually first quarter a year ago, with some of the big multinational companies. we're starting to show signs of weakness out of the eurozone. now, a lot of times they'll tell us, it's foreign exchange differentials, but that's a code word for business stinks in europe, and so the strange thing is, the market, for whatever ropes, is completely ignoring that neglect testify side of the -- negative side of the
equation and has been ignoring most of the bad news, and in fact obviously rallied very strong on the better than expected employment numbers today, which has been a real problem for the feds and this administration, that the employment -- unemployment numbers romaine -- remain so high. >> teddy, one of the deans of the financial community to another dean of that community. a little ongoinger, charlie, my friend here says that really if the fed just keeps pumping they're no stopping. >> we're going to 20,000. it's difficult -- >> over the next year. >> neil: over the next year? >> let me premise this, okay? if you have -- if inflation stays in check, chit is, if the economy grows moderately, office it is, with employment -- unemployment still pretty high but going down slightly. that means the fed will keep printing money. there won't be inflation, and guess what?
the market goes up. the market -- george willis wrote a good book about the mind of the market. this market, the mine immigration set on the fact of moderate to low inflation, very low employment growth, decent corporate earnings growth, not great but daytona, as teddy was pointing out, and the fed keeps printing money. if those factors stay in place we're going to 20,000 over the next year. i might even be understating it. with those factors -- >> neil: well, we crossed 14,000 in 2007. that is where it hit the fan. that would be a speedy -- >> our banks are better right now. they may have some exposure,. >> neil: what is really fueling this. just the fed -- >> it's the fed. the mind of the market. the markets work in bizarre ways. they have mindsets, and right now the mindset of the market are those factors i late out. now, if you're an an investor
you have to watch those investors, and how do you know they're going to change? watch fox business and cavuto. learn about the economy and the market. those are the factors -- that'sed the mindset of the market. >> neil: are you talking federal -- putting back together your best seller. >> circle of friends. >> neil: too you get a sense that -- i know wall street climbs a wall of worries but there's no worries when the fed has their book. despite the shenanigans in washington, there's always that. uncle ben, helicoptering in -- >> if nation picks up, yes. the fed will stop printing money. that will change the direction. the mindset of the mark is now low inflation, fed still in the game why do we have low inflation -- >> neil: and we benefit by comparison with the -- >> the market is different.
here's the interesting political question. we have market that is going crazy. anen employment rate that is very high. if that was george bush's market and are reagan market, you'd be hearing that at the disparity. the disparate of the rich and poor is going to keep growing, and you're in the information economy you've transact information on wall street, produce information like user,er in technology. you make a lot of money. >> neil: let me quickly tell you. the obama white house, is going to say the market settled under a stewardship, must be all our stimulus and spending. you say what? >> the disparity between the rich and poor is going to keep growing. that's the underlie political story. i'm going to a lot of money and you are but the factory worker is not. >> neil: people he calls, if they don't return the call,
there's hell to pay. mike wallace, he is italian. >> anybody remember this? >> these cuts are not smart, they're not fair, they will hurt our economy. >> the sequester is harmful. >> they'll add hundreds of thousands of americans to he up employment role. >> workers up employment benefits are reduced and cut back. >> the unemployment rate might tick up again. >> i love it. i'm the only one who gets it. we're still waiting because by the government's numbers, that sequestration, i'm still waiting. the latest employment data, put ting putting putting the kabash on the sequestration, and little more than to rounding errors. now, it took -- in march when we didn't see the impact, democrats say, you just wait until april. well, we just got the news on april, so far no drag.
in fact no signs period. which weed pointed out when we covered the sequestration thing, it was inelegant and sloppy but the backup backbone was some cutting so it wasn't going to do anything horrific but was promising it cut something. cult the growth of something. but i do know they consistently do not swing the sequester doom and gloomers way. that is what is clear. tom says, looking at all of this and understanding that there's a big old secret disconnect. they still hold out that possibility, tom, that there will be hell to pay and we will see it and soon. again, we did not see it in april. >> well, you know, trying to scare you as best they can. that's what they always do. the fact of the matter is, it's not going to work. all they're doing is reducing the growth of government as opposed to shrinking government.
there's less of an increase. that's all we're talking about. of course it has no much impact. what does have impact is regulation. and you see great -- more and more regulation from the epa and other agencies, and now in the healthcare area. that will slow growth, and as this thing rolls in, we -- even max backus predicts loyal democrats -- he worries that obamacare will create a mess. >> neil: it's not showing up yet in these markets. i know a lot of your friends in the business community have talked about it. worried about it. planned for it, and sort of kept a lot of cash aside. what do you make of that? >> i think there's a disconnect between wall street and main street. i see retail numbers every week. a company like city sports is doing extremely well and adding jobs, but across most of the retailing things slow down as
the public numbers reported. wall street keeps running to the moon as if everything is hunky doory. i don't think it is. look at the up employment data. down 10%. the reality is almost 14% of persons are either unemployed of underemployed, and not by choice, with a 64% participation rate, things are not that worthy out there. >> neil: tom, great seeing you again. market forecaster or no, we shall see. tom stenberg in massachusetts, speaking of which we now know patriots day wasn't the bombing suspects' first choice. ask yourself how we know? then ask yourself if this guy should be having second thoughts. [ man ] on december 17, 1903,
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where the suspects attended college. all this after we're wearing that dzhokar tsarnaev original live talked about his brother, who just died in a followup shootout. planned to strike on july 4. until he clammed up when his miranda rights were read. the attorney general botched it by letting the suspect have his rights too soon. if that's so, that's troublesome. >> absolutely. it's exceedingly rare for the judiciary to interject themselves into an ongoing investigation. this is a baby -- you never have a baseline for this kind of activity. with the justice department and at the federal magistrate injects themselfs into an ongoing fbi investigation. >> neil: now, it's going to be he said/they said but we do know and from prior conversations, patriots day wasn't the target date, another bigger holiday, july 4th, might have been the
day. what would that mean? >> i think it's very likely -- the symbolism on both dates. neil: nor national. >> more bang for the buck. that's the fact. and it ties together with their extreme ideology. they're striking at the heart of what we represent. patriot day. the marathon. july 4th. independence day. and when you couple that with the fact of the statements they made to the victim of the carjacking and gassing up the big suv full tilt, they were trucking down to new york. and no one gave ray kelly a heads up. terrifying stuff. breakup on multiple levels between the agencies and the fact that these animals, these horrible guys, always keep us squarely -- us, right in new york in theirs crosshairs. >> talking to police commissioner in insuring. let me ask you about the mindset of one who goes from -- tamerlan died in the shootout, and we mentioned a couple years ago he seemed like a normal kid.
not kid but a young man. 23 or 24. and whether it was linked to this visit abroad or even during that course of time, he got crazy or he got more volatile. >> right. >> neil: how do authorities keep track of that kind of thing? >> well two ways. the authorities are always doing the link analysis and scouring the internet and social media sites for nuggets of information. >> neil: how do that do that it without privacy invasions? >> that's open source stuff. the real -- the girlfriend withcatherine russell, tamerlan wife, she said this guy was a boxer, he was fun, and then one day he is praying eight times a day, espousing radical ideologies. he shifted. another guy stepped in his base. a bad guy. nicole should have picked up the phone and said, take a look at this guy you see something, you say something.
we need everybody's help on this one. >> neil: but very few are going to turn in an old boyfriend or girlfriend or spouse. what would be the compelling factor to do that? >> well, that she is terrified. she realized -- >> neil: found it odd. >> the prior terrorist acts they were stoppedr there's 9/11. which is fading. >> neil: now if you saw something, -- how do you know there aren't more friends like the co-conspirators who were apparently hiding and getting rid of evidence, who are more sympathetic to both side -- tar never -- tsarnaev than to the people he killed and maimed. >> i concur. see how kickly they went to dump the evidence from his room. they were simple tieding with tsarnaevs, not with the victims of the boston marathon bombings. >> neil: you wonder how many of those are out there. >> can't speculate on that. my guess is quite a few.
they're falling under the spell. we got rally the troops, neil. >> neil: patrick, thank you very much. meanwhile, i want to switch to something a little different. but for a lot of folks pertinent. these are not fees from winter. these are scenes from spring. these are scenes from this week. so, time to put the global warming argument on ice? once and for all? postal service a small jam maker can ship like a big business. just go online to pay, print and have your packages picked up for free. we'll do the rest. ♪ energy efficient appliances. you can get a tax write off for those. a programmable thermostat, very smart, saves money.
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so much for al gore's global warming prediction when he says we should brace ourselves for one hot 2013. to the weather bell.com's jill, who says, i'll need to put the global warming talk on ice. joe, as you know, we chatted on the cold weather to say, it's climate change and this is part of climate change, what say you in. >> first of all the climate change is redub can't. the climate is in a constant state of change always looking for a balance it can't obtain because of the design of the entire system. okay? i'm not going to get into a big lecture about that. i am not going to be like the other side where they take one specific event and say, ah-ha, proves my point. what does it show you -- what is making americans up to is what has been going on the past four or five years globally because the pacific is shifting its into cold mode.
the atlantic is going to follow in five to ten years. over in europe, and in china, it's being worse. they had the worse winter in germany in a hundred years and the fifth cold winter in a row, and it's similar to what happened in a similar crime period in the 1950s when the pacific shifted from the warm mode into the cold mode, and europe got cold, the far east got cold, those who studied the korean war know how outrageous the weather was, and the same things have been happening in the far east. so basically guys like me get punished for what we know and say, no, no, no, that not happening, and yet if you go back and look, it's not brain surgery, it's not the hardest thing in the world if you have a similar pattern, similar things will happen and that's what is going on. >> neil: assuming this is a pattern, to your greater point, where is it leading us for this spring, this year? i know you have already said it's going to be a busy hurricane season, but explain. >> yes. well, first of all, this pattern
is a god send for tornado country. when you drive cold air masses into the deep south you don't get a lot of tornadic activity. the wildfire situation in california is serious but that's because of the ridge over california. that's going to get eradicated in the next several days and that ill improve. as far as summer, not as hot in the midwest and great lakes and northeast. silver hot in the west and the western plains of the united states, because in the 1950s, when the pacific cooled, there's less water vapor available because -- we're -- the pacific is west of us so dries out during the summer, dry summers turn hot. that being said the atlantic becomes the focus for hurricane activity. the decade of the 1950s was hot and dry across much of the united states, but was followed by the 60s and 70s, and you remember during the '70s, not only was disco in, but talk of an ice age was in, too. i was never into either of them.
>> neil: i actually remember that now. not the whole disco thing. i do remember people saying the ice age was coming. you're good. >> that gets denied, too. >> neil: i hear you. thank you very much. guys, we just thought we would counter anything your hear on the main stream media with alternative facts. my goodness. joe. forget this market story. new signs this healthcare law might very well be its undoing. and money clearly not finding us love in the middle east. now look what it's getting us. in latin america. [ male announcer ] ok, here's the way the system works. let's say you pay your guy around 2% to manage your money. that's not much you think. except it's 2% every year. does that make a difference? search "cost of financial advisors" ouch. over time it really adds up. then go to e-trade and find out how much our advice costs.
enough of the formalities... lets get started shall we? jimmy how happy are folks who save hundreds of dollars switching to geico? happier than dracula volunteering at a blood drive. we have cookies... get happy. get geico. fifteen minutes could save you fifteen percent or more. >> neil: well, never let it be said we didn't trial. a little after 10:30 this morning we did in fact cross 15,000 on the dow. first time it's ever been at that level. the last time it hit 14,000, a thousand points ago, back in 2007 before the meltdown, and it took only three months to move up from 13,000 at the time. and we are still in and out of the 14-something range, after all that time. the market may be soaring now, but with more of the healthcare law kicking in, how much longer is this going to last? the new worry for a lot of bulls out there, more companies are cutting back worker hours to
avoid the healthcare law penalties. my guest knows all too well. in fact he is suing over it. he owns a lion and rose restaurant and pub. what are you suing over and who are you suing? >> the reason i got involved in this case in the first place is -- i think it's important to not only stand up for my business but for other businesses across the country that are both to be damaged by the consequences of the act. and when you see america going off the tracks, we all have a responsibility to try to get it back on track if we can. there are regulations that are -- have been written by the irs under the aca that will force players to pay exorbitant fines or cut back on employee hours. i don't want to pay the fines because we would have to shut our doors. the fines equate to $2,000 per employee, and in our case we
have over a thousand employee. so you're looking at two million dollars in a fine that is not even tax deductible. also, i believe we're fighting for our employee, because to avoid those penalties, we have had to cut hours from 40 to 28, so now our employees work 28 hours per week instead of 40 hours per week. and it's been a difficult thing for some of our employees women have had employees who have asked me, look, i have rent to pay, mr. tharpe. i understand that and i feel for you and i'm going to do everything to change this put for now i have the choice of giving you 28 hours or no hours because if we don't comply with this law, what happens is we close the doors and you get zero hours. neil neil now, do . neil: now, did you provide coverage for these workers? >> we provide, as most
restaurants provide coverage to certain segments. and in our case we provided coverage to managers but did not provide coverage to our servers, our folks in texas who make 2.13 an hour but they make very good in tips. >> neil: they come and go and the argument was it wasn't as pressing until the government made at it pressing case. but what is the likelihood you would even succeed at this? the government seems to be saying, and now we need more money. we're not going to junk this. >> that the problem. at this point if people from both parties are starting to question where we're going with this. max bachus is one. rockefeller is another. one hoff the democrats that supported this in the game, and was one of the architects of it. >> neil: go ahead.
>> yes, yes. and now rockefeller is saying it's absolutely incomprehendible, a massive bill that nobody can understand. and we tried to understand and it we don't. bachus said it's a train wreck coming down the pike, and it is. that's what we see. >> neil: that's interesting. who would know better than a guy trying to run a business. allen tharpe, thank you very much. keep us posted. >> meanwhile, from one man trying to stand, college graduate trying to get into one, according to a new survey 41% of recent grads are underemployed. holding a job that doesn't really require a college degree and market watch's jimmile mccann says all the more rebounds to they can the job numbers with a grain of salt. nevertheless, they are what they are. but you're saying that these jobs aren't what they appear. >> no. we've again from a nation that had pretty good jobs,
high-paying manufacturing jobs and construction jobs to jobs that don't pay very well at all. the service industry jobs showed the most growth. those jobs don't pay well. the construction jobs have not come back. we lost two million construction jobs after the housing bust and only replaced 200,000 of those jobs despite the improvement in the housing industry. and what is happening is everywhere from the federal reserve board to washington, policies have been put in place to help the big guys and those with access to money and those that can invest and those with the credit to get loan, and the low interest rate policies have helped that guy. they have not helped the small business owner like your previous guest. those guys are being subjected to new healthcare regulations. they don't have access to free and easy capital like their bigger breath rein -- breath rein do, and they're struggling to a make pay control and they provide the jobs. >> neil: sorry to jump on you.
what is the disconnect between showing this moment, the dow crossed 16,000, and ending the day fairly close it to, and wall street running off to the races? what is the moment, then, you say, that moment doesn't really indicate reality, because the companies that make up that dow, 30 largest and most sort of common names in america, in the corporate world, they're doing fine. they. >> they are doing fine. >> why is that the case? and the rest is not. >> they're doing fine but maybe not as great as the stock market suggests, because revenues are actually down for the first time since the recovery began. so even within the large businesses, we're not seeing the traction you would hope to see by this stage in the recovery. the disconnect is, the large, the banks and those that have large bank accounts with each
bank, the larger businesses, they have access to the free, cheap and easy money from the federal reserve board. and the fed reserve board has put interest rates so low that people are investing in the stock market because they have no other where to go. so, the stock market is benefiting from the policy but it's not really a reflection of economic traction. >> neil: all right. we shall see. thank you. >> thank you, neil. >> neil: the salesmen and the top line growth, it's just before you take out expenses and everything out of the money you away. that is what is slowing. they talk about top line growth, slowing sales. you're overall revenue are not keeping pace, and that can be -- in the meantime, the new york knicks came dressed in black saying boston is going to be its funeral. least just say, bad optics. d for investors like you? tdd: 1-800-345-2550 schwab bank was built with tdd: 1-800-345-2550 all the value and convenience investors want.
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yeah? then how'd i get this... [ voice of dennis ] ...safe driving bonus check? every six months without an accident, allstate sends a check. silence. are you in good hands? >> neil: the new york knicks said they were going to a funeral. instead, they're getting buried themselves. one win away from sending the boston celtics home. the knickerbockers showed up all wearing black. it was going to be boston's demise. just one teeny little problem. they lost. and then the boston fans said the knicks look more like chumps than champs. certainly missing entirely -- no offense, i'm not a celtics fan but i do see your point that bad
optics to put it mildly. what did you think and how has it revved up boston? >> it was unfortunate. this has become a series where all the pressure has just been shifted on to the beaks of the knicks. have not won a playoff series since 2000, they're up 3-0, can't close it out. and not being able to close out at home when you do the clown show and show up looking like johnny cash, it's just not good. you have to follow up and they couldn't. >> neil: you sensing that yankee kind of series all over again. >> well, sure. 2004, the only time this has been done in major league baseball, 120 years, the red sox against the yankees, boston against new york. never been done in the nba. the times in hockey but not a lot of press dense. the fact you have a boston team against a new york team is adding to the tension. >> neil: i thought -- i thought the knicks were on their way. i'm not nearly as accomplished -- i didn't know
this stuff so i defer to you, so i do know it looks stupid to dress in black, talking about a a team you're playing that just felt the first real terror attack on u.s. soil since 9/11. just stupid. >> yeah, that was unfortunate. i didn't aattach any of that significance to it -- >> neil: i don't think they spendded -- intended it that way but someone missed the connection, because boston fans did not. >> their own coach was unaware they were doing this. one of the players talk about it. wear your black on wednesday, some sort of a team'm -- everybody showed up that way, and you have to follow up and win the game when that happens, and now they come to boston, the -- -- celtics playing with the house money now. >> neil: they're down 3-2, this would even it up and then the
seventh game would be in boston e. right? >> the seventh game would be in new york on sunday. either at 1:00 or 3:30, so if they earn home court advantage, but if they lose tonight, the pressure they tack on to madison square garden on sunday would be enormous. >> neil: already not knowing where the games were is the first tip-off how little i knew. just curious, hough -- hough is that all going down in boston? what the knicks said, the whole black thing. the knicks said they did not even think of the terrorist attack. it wasn't on their minds. they didn't mean do it in that sense but the damage in the eyes of celtic tons, and bostonians in general is done, right? >> i think that boston fans and the celtics saw this as an immature arrogant act by a team that thinks they're going to win and didn't fin. at it fun to see -- fun tease them and it puts the city of
boston in an enviable situation, they're having fun with these guys and all the pressure is on the other team. >> neil: it is. we shall see. dan, very good having you. thank you. >> thank you. >> neil: the president passed it and now a state is challenging it? our legal eagles all over this one. we try it next. [ male announcer ] in blind taste tests, even ragu users chose prego. prego?! but i've been buying ragu for years. [ thinking ] i wonderhat other questionable choices i've made? [ club scene music ] [ sigh of relief ] [ male announcer ] choose taste. choose prego.
>> neil: the south carolina house just passing a bill that makes enforcing the president's healthcare law a crime in the state. can it do that? to our legal eagle we go. staysy, can they do this. >> in well, neil, they're stretching. they're relying on the teh amendment which says the powers that are not granted to the federal government can be -- can go to the state, and obamacare
has already been declared constitutional by the supreme court. but what south carolina is saying is, we don't like the way obamacare is affecting our finances. it's costing our taxpayers extra dollars. it's going to cost our businesses to much money, and we're going to try to nullify it by passing this bill saying, it's a crime in our state if you uphold obamacare. good try. >> but it's not going to work. constitutional law 101, a state cannot come in and trump what the federal law has done, unless a federal court comes in and says, the federal law is up constitutional. that obviously has not happened. the supreme court, whether we like it or not, hat upset obamacare, a state cannot unilaterally do this. this this second state. oklahoma passed a similar statute in march. i'd say that's going down, too. this is not law yet. it's now in from hoff the south carolina senate. >> neil: the health care law --
>> the health care -- if they're listening out there in south soh carolina, don't vote for this. it's going 0 make south carolina done -- >> neil: cooperate you argue a -- couldn't you argue changing venue or something -- if harry reid and max backus is saying we're incorrect on the cost. the parameters changed. the law itself and everything associated with it changed. >> you have this ruling from the supreme court that says, even if there are flaws in obamacare, it's constitutional. it's federally mandated health care and is constitutional in the united states. until the supreme court changes its mine on that -- >> neil: i'm sorry. if the states were told that this was going to be the cost, and now the cost has changed potentially dramatically, do they have an axe to grind? >> of course, but legal i -- legally -- >> it's a friday afternoon. i'm trying to be nice.
>> trying to put on my nice face for you. it's not going to win this argument. you're going to lose this and south carolina is going to lose it, and i'm going to lose it right now if you're not listening to me. south carolina, and oklahoma, you can't do this. you can't have states unilaterally trying to overturn what the supreme court has said. now, if down the road something happens with the law that changes and it's modified -- >> neil: changing already. changing now. >> if the fines michigan they deem is going to be oppressive to the state and they want to challenge a federal law on those grounds, then -- >> neil: challenge that. >> we're not going to follow it. >> they're trying to say, we dismissing the whole law and pre -- and they're making -- criminalizing it. >> criminalizing its a little crazy. i have to admit. they have could haved civil penalties but they're saying this law is so damaging to our economy, we're not going to follow it. >> follow through on the logic
if i'm a business owner and i say, okay, let me see, i better follow the federal law. follow obamacare. don't want to get in trouble. but if i do that, then me state is going to put me in jail and call in the a criminal? doesn't make sense. >> it's an absurd outcome. so the citizens of south carolina have to take up action against their own law if it passes the senate, and say, this is harming us, or discriminating against us because we're not even allowed to par partaken faredly man dated insurance. >> now we have two states that have done this. if the states aren't listening to what we're saying right now could be a third and fourth state. it could be a real mess. >> neil: at the very least, a majority of them don't want to be part of the -- >> right. they can opt out. they can opt out and just not take federal money. that's fine. but you can't criminalize the fact of following what has been law that has been approved any supreme court of the united states. >> i have to agree.
that a pretty radical position if you think about it that south carolina is taking. >> neil: i have no idea what either of you are saying but i agree it's outrageous. >> go back to night school, neil. >> neil: this is what happened when you have, like, perfect s.a.t. students on the panel. yikes. when we come back, they're poeting us and we keep shelling out for them? this has got to be illegal right here. [ man ] on december 17, 1903, the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪
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>>. >> neil: ahead of president obama's visit to costa rica, protestors there burning things after the president telling to him get out. costa rica is expected to get about $1.8 million of aid this year. they have gotten tens of millions over the years and military strategist, maybe you need to reconsider this. i have seen this time and time again. you know you can't buy country's love but i will be damns if i put a deposit on hate but that is what we are doing. >> it's the definition of insanity. we keep doing the same thing over and over again and expecting different results. that is the reason why it's labeled like that. the deal in costa rica speaks clearly. i think there is a very significant difference between the apparent belief of the costa
ricans or of these people that are burning pictures of president obama and the actual event. we need to have a close look at what the true belief system is of these people in these countries that we're loaning money to. mexico sand the third largest trading partner is a relatively poor country. it's a problem because we have to make sure we know that "a" where the bone is going and "b" it is going to a country that is not only going to use the funds for their security, for their economic growth and to make sure they are putting out the right fires out but accountable to the money. >> neil: they are not. what happens, in egypt we have given that government $60 billion over the years to say
nothing about the hundreds of millions we promise to the muslim brotherhood which is running the show in egypt. we choose our friends but our friends quickly turn on us. >> it's historically true. you a the money that we are snengd egypt which is effectively turned into an islamic state recruiting terror before our eyes. >> neil: look at pakistan in hyper drive. >> hyper drive in pakistan and yemen. all these different countries that are so corrupt internally that we can't put our finger on where the funds are going. it's no different than other countries. >> neil: you are right. why don't we stop and sorted this out before we compound it by giving more funds? >> because the system right now needs to have a kick in the
butt. we need to have a hard look at the leadership who is going to have a hard look at what the actual responses by the people living in these countries we are sending billions of dollars. it's got to start from the top. we are going to find ourselves more hot water. >> neil: ron paul says turn the faucet off? >> i agree. i say turn it off. when you turn off a faucet, it's running at a high rate and pressure is high, people get shaken up. unfortunately, the process of the way that our leadership is functioning of being able to cut that off is a little too much pressure. it's got to be done slower. i agree, i think it needs to be done without any question. >> neil: aaron cohen, thank you. we're going to take a closer look at what is driving this market, whether it's the fed or administration, whether it's
just companies and rip roaring and spending their money now. three hours on fox business network we get into it. this weekend all business shows on fox we look out for you. >> eric: i'm eric boling, along with our panel. it's 5:00 in new york city and this is the five. >> eric: sue premeditate court justice clarence thomas sat down for an interview and it did not disappointed. one of the most powerful african-american conservatives talking about the most powerful president obama. has he visited him. >> i don't do a lot of washington. i'm not into politics. i mean there is not that